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Gensler Resigns from SEC Amid Growing Hopes for Crypto-Friendly Policies Under Trump

US Securities and Exchange Commission (SEC) Chairman, Gary Gensler resigns from his post at the end of Joe Biden's presidency on the 20th of January, 2025. Moreover, inauspiciously for him, that will be inauguration day for President-elect Donald Trump when he's going be take over. 

For years, Gary Gensler known as a bold regulator, but his finance and crypto legacy remains sharply divided.

Focused yet controversial leadership

Confirmed by President Joe Biden in April 2021, Gensler had a spotlight on investor protection as well as reforms within the financial markets. He led the SEC and emerged as one of the more combative figures, given that he launched an aggressive assault on cryptocurrencies. 

Key enforcement actions included lawsuits against Binance, Coinbase, and Kraken, which positions the SEC strongly as a watchdog that controls regulatory areas. He was blamed for strangling innovation and with this, creating uncertainty among crypto professionals.

Gensler finally, after a long stretch of fight and tension in the industry and the courts, won historic approval for Bitcoin spot ETFs. The ETFs were indeed a giant step that marked the opening up of a safer route through which institutional investors can enter into Bitcoin.

Effects of Gensler on Crypto Markets

The crypto market reacted powerfully to the recent events. Following Trump's electoral victory, the Bitcoin price jumped nearly 40% to nearly $100,000. The market became more optimistic following the resignation statement, with expectations of less stringent regulations with a new administration.

Trump Leadership Changes

President-elect Trump has already publicly endorsed cryptocurrencies and said he would make the crypto environment. Appointments from the crypto-friendly camp and moves to position the U.S. as a global center for digital assets can certainly shift the priorities of regulation. A shortlist of reported contenders to replace Mary Jo White as the next SEC Chair is from the crypto-friendly camp: names such as Dan Gallagher and Paul Atkins are floating about.

Into The Future

Gensler's departure certainly represents another watershed for both the SEC and crypto in noting years of his administration as underlining challenges facing regulation in an evolving market, always finding that difficult balance between the protection of investors and innovation. The Trump administration promises a tone shift on regulations.